Choose the given statement that is true/false:

Policy of Protection means protecting domestic industries against foreign competition.

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True

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Detailed Solution

The given statement is true.
Protectionism policy protects domestic industries against foreign competition by suggesting tariffs, subsidies, import quotas, and alternative restrictions placed on the imports of foreign competitors. It permits the government of a country to push domestic producers and thereby boost the domestic production of products and services by imposing tariffs or limiting foreign goods and services within the marketplace. As a result, the benefits of economic trade policy lead to a better trade balance and the protection of rising domestic industries. However, disadvantages like an absence of economic potency and a lack of customer selection exist. Thus, the policy of protection means safeguarding domestic industries against foreign competition.

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